Alyssa Recently Opened a Small Business Selling Hand-Made Necklaces

question 8

Multiple Choice

Alyssa recently opened a small business selling hand-made necklaces.She's a marketing whiz,and her brand was immediately picked up by a few popular blogs.She worked feverishly to produce a big inventory to keep up with the sales.After the first six months,her sales evened out,so she reduced her inventory.Now she knows how much inventory to keep to match her sales and her budget.Which of the following processes from systems theory explains this sequence?

• A)Positive feedback - negative feedback - homeostasis
• B)Input - throughput - output
• C)Enactment - selection - retention
• D)All of the above.

Understand the principles of capital costing and how to apply them to project analysis, including identifying relevant costs.

Calculate the book value of assets and understand the significance of depreciation in capital budgeting.

Evaluate the impact of taxation on project cash flows, including understanding the concept of the depreciation tax shield.

Assess the initial and operational cash flows associated with capital investments, including changes to net working capital.

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Definitions:

Retained Earnings

Retained earnings represent the portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a particular period.

Rent Expense

The cost incurred for leasing a property or equipment used in the operation of a business.

Fees Earned

Income generated from providing services, often used in professional practices like law firms, consulting firms, and architectural firms.